The Bank of Thailand kept its benchmark interest rate unchanged at 1% at its April 2026 meeting, as expected, leaving borrowing costs at their lowest level since 2022. The Committee assessed that the current policy rate remains appropriate to support economic recovery amid heightened uncertainty, while noting that the rise in inflation has been driven mainly by supply-side factors. Thailand’s economic growth is projected to moderate to 1.5% in 2026 and 2.0% in 2027, as the conflict in the Middle East weighs on activity by raising business costs and eroding household purchasing power. Meanwhile, inflation is forecast to average 2.9% in 2026, accelerating from -0.5% in the first quarter of this year, primarily due to higher global energy prices and cost pass-through effects. Inflation is then expected to ease to 1.5% in 2027 as supply constraints gradually diminish. The Committee said it will continue to monitor the impact of the war and other factors on future inflation risks.